NZD/USD seen at 0.70 by year-end – Danske Bank

Jens Pedersen, Senior Analyst at Danske Bank, expects the Kiwi dollar to test the 0.70 area towards end of 2016.

Key Quotes

“The March rate cut by RBNZ reversed the course of the NZD, which has gained support from waning inflation expectations and improvement in global risk sentiment”.

“However, with the risk of a global economic downturn fading and commodity prices having bottomed, we look for NZD/USDto hold on to recent gains”. 

“Towards the end of the year, stronger global economic growth and higher commodity prices should support a higher NZD/USD, around 0.70”.